3-Factor Strategy to Increase Residential Video Attach Rates
Residential video applications allow users to engage their security systems in new ways, creating a stickier clientele.
It used to be alarm systems were primarily focused on keeping the bad guys out, and video was only an option for the very high-end of the market or in commercial installations. Fast forward to today and everything has changed; the costs of residential video have come down considerably.
Quality has also improved and now video can be offered for security as well as other lifestyle enhancements.
Video is the key to increased customer loyalty and better relationships. Consider: some customers who have remote video monitoring as part of their home security system log into their app on average 2.5x more than those without it.
It’s also known that consumers who interact with their app become stickier customers. And yet some security dealers start with the lowest cost option to win the deal. Don’t fall into that trap!
Following are three factors that dealers should consider before leaving money on the table by not including video monitoring.
1. Insufficient Internet network.
Dealers need to fully understand the health of their customer’s home network while they are recommending video as part of a security solution. Homes today are complicated with connected devices, televisions and computers connecting to what is likely an insufficient Internet network.
Homes are also larger: the average U.S. residence today is nearly 1,000-square-feet larger than in the 1970s. A single WiFi router will not be adequate for what dealers are recommending, let alone the client’s other devices. Internet service providers do not design residential networking solutions; they drop off a faster wireless router and hope it reaches the furthest connected device in the home.
Stand at the front door and see how far away the router is located. Will a video doorbell perform as intended? For many homeowners, video doorbells are the entry point for a whole-home solution. IDC recently released data from its annual Consumer Internet of Things Survey conducted earlier this year that reinforces the need for homes to have a reliable home network.
Adam Wright, senior research analyst of Consumer IoT for IDC explains, “Having fast and reliable WiFi is vital for the smart home, yet it’s often an afterthought for most consumers. Vendors that can deliver adequate WiFi solutions as part of their portfolio of smart home devices and service will be in a strong position to succeed.”
Networking products like mesh networking and higher-speed routers have grown in recent years for many dealers with the expansion of video solutions. This is especially true in the homebuilder market as more homes are being prebuilt with high speed networks to support the use of connected devices and eliminate dead spots. Paul Romanelli, owner of Suffolk Security Systems of Southold, N.Y., says he has aggressively gone after the issues that can impact video.
“I feel strongly that to be successful and ensure our clients have the best experience, we need to own the home network. Everything we do in that home is about connectivity,” he comments. “If the network isn’t strong or if it has different WiFi points, our products won’t work and the client gets frustrated. We offer a mesh networking package that provides us with additional RMR, while also ensuring everything in the home operates as promised.”
2. Too much baggage.
Too many dealers carry the commercial requirements of video into the residential space when it isn’t necessary. Homeowners don’t need fully wired video solutions with massive amounts of local storage.
Homeowners don’t face regulations that require them to keep a year of video recording for compliance issues like many commercial customers do. An onsite NVR/DVR isn’t necessary; accessing the video clips from the Cloud is adequate for most consumers.
Today’s residential video solutions are simple to set up, and easily integrate with your professionally monitored system. Some dealers routinely ship indoor cameras to their customers with simple instructions to set up and enroll through mobile apps. Others have clients who have expressed interest in a video-only solution just for the lifestyle benefits that video offers.
3. Evolve or be disrupted.
The professional residential security industry needs to learn from some of the new market entrants and adjust how we talk about our solutions.
Dealers need to shift from a technology discussion to telling stories: show your customers the value of helping their parents age-in-place, how video can help them stay connected to their home when working late or traveling, to see that their daughter got home safely from school and is doing her homework.
Quentin Gunther is the premier security dealer program leader for Resideo.
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